The cryptocurrency market crashed on March 11, 2025, with Bitcoin plunging to $76,000, its lowest level in four months. The S&P 500 also erased $1.4 trillion in market cap, marking its worst trading day since 2022. The widespread crash across risk assets was triggered by fears of a looming recession, with experts predicting a 40% chance that the US economy might enter a recession this year.
Cryptocurrencies Price Prediction as US Recession Fears Spark Market Crash
Investors are turning away from risk assets such as cryptocurrencies and stocks due to economic uncertainty. Yesterday, the S&P 500 market cap dropped by $1.4 trillion, marking its worst day of trading in two years. This index is now approaching a six-month low.
Cryptocurrencies also saw a similar decline that caused $954M in total liquidations after Bitcoin price fell to $76,000 and Ethereum price fell to $1,800 for the first time since November 2023. Most top altcoins are also trading at multi-month lows.
This downtrend was triggered by the fear of a looming recession after predictions market Kalshi showed that the chances of a US recession have climbed to 40%. Because of these fears, traders are de-risking from risk assets like crypto and stocks and turning towards assets such as gold, which recently reached an all-time high.
Trump Fuels US Recession Rumors
The markets also grew anxious after President Donald Trump failed to rule out the likelihood that the US economy could enter a recession in 2025. In an interview with Fox Business, Trump admitted that his economic policies, such as economic tariffs, would cause short-term turbulence. He stated,
“There is a period of transition because what we’re doing is very big… We’re going to have a disruption, but we’re okay with that.”
Last week, Federal Reserve Chair Jerome Powell noted that despite the ongoing economic uncertainty, the US economy was still in a good place. Therefore, the Fed was not in a rush to trim interest rates to stimulate economic growth and avert a recession.
“If the economy remains strong but inflation does not continue to move sustainably toward 2 percent, we can maintain policy restraint for longer,” Powell said.
What’s Next For Cryptocurrencies?
There is a mixed market sentiment on whether cryptocurrencies will recover after the recent crash. Analyst Ali Charts noted that after Bitcoin price fell below its 200-day moving average, the next key support level lies at $66,000. Without any bullish catalyst, and with recession fears still at play, BTC price could drop gradually until it hits this support.
As Bitcoin price moves down, other cryptocurrencies are set to also decline. However, ARK Invest CEO Cathie Wood noted that the recent downtrend was the crypto market discounting the final phases of a rolling recession. After this phase, the crypto market will experience a deflationary boom in the second half of 2025.
As the market sentiment remains uncertain, Bitcoin price may face challenges holding the $80K support level. Ethereum could also accelerate its decline after hitting 2023 lows. This highlights a bearish price prediction for most cryptocurrencies.
Frequently Asked Questions (FAQs)
Cryptocurrencies are dropping today after the odds of the US economy entering a recession rose to 40%.
According to prediction market Kalshi, there is a 40% that the US economy will enter a recession this year. President Trump has also admitted that his economic policies will cause a short-term turbulence.
Bitcoin price could drop below $80K as investors continue to de-risk from crypto and stocks.
muthoni
Muthoni Mary is a seasoned crypto market analyst and writer with over three years of experience dissecting blockchain trends, price movements, and market dynamics. With a sharp eye for technical analysis and an in-depth understanding of on-chain metrics, she delivers insightful, data-driven content that helps investors navigate the fast-paced world of digital assets.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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